Determining a Selling Price

Your home will be sold through a combination of aggressive advertising, market demands and the MLS system, all facilitated by your REALTOR. Simply put, if your home is priced correctly, well advertised, and it has what a certain buyer is looking for, it will sell.

The correct selling price is the highest price the market will bear. The final selling price of similar homes recently purchased in your neighbourhood is always the best indicator of how much buyers are prepared to spend for your home. In addition, expired listings provide valuable information on what price ranges did not work. In many cases, listings expire and the home is taken off the market because the price set was too high. This at least gives you an indicator of what's too much to ask for your home.

Most homeowners believe that their house is special and that its true market value is higher than it really is. This is to be expected. We become familiar with our home and our neighbourhood. We hear stories about how much someone else sold their home for. We really think our decorating and renovations are exactly what someone else will love. But what happens when your home is placed on the market at a price well above its true market value?

* There is less activity than there should be and very few reasonable offers.
* The listing REALTOR will ultimately suggest a price reduction which you will be forced to accept very reluctantly.
* At some point, your for sale sign will say, "Price Just Reduced." As a buyer, wouldn’t this make you wonder what was wrong with the property?
* If there are still no reasonable offers, the REALTOR may recommend another price reduction.
* Now that the house is correctly priced, it faces another serious problem. REALTORS wonder why the house was on the market for so long and why it has had so many price reductions. Their assumption is that something must be wrong with the property and it does not get the attention or showings that it deserves.
* At some point in time, a buyer will offer a price well below the market value of your home. The buyer knows that the home has been listed for a long time with several price reductions. He or she can use this information to justify the lower price. All this can be avoided by pricing your home reasonably at the outset.

Packaging Your Home to Sell

The next challenge, after setting a price, is to package your home to sell, just as you would package any product in order to present its best possible image.

As strange as it may sound, it is estimated that over half of all homes are sold before the buyers get out of their car. Every buying decision is an emotional decision, even if logic is used to justify the eventual purchase. Spend ten minutes looking at your home from the bottom of your driveway, from the curbside and across the street. Walk slowly up your driveway and look at your home through the eyes of a buyer who is seeing the home for the very first time. Does your home have "curb appeal?" Does the home present a neat appearance? Does it look as if it received tender love and care? Does it look inviting? Will it look like "home" to a buyer?

Remember that the first impression is vital. You want every view of your home to create that instantaneous, positive first impression. You only get one chance to create it.

In the world of marketing and advertising, it is common knowledge that "perception is reality." Your home must be perceived by the buyer as a well kept home that will make a good home for their family. Only then will potential buyers give it serious consideration.

A positive first impression should lead the buyer into thinking:

* "This home is well-kept."
* "I could move into this house tomorrow with no hassles."
* "I could be very comfortable in this house."

Buyers must be able to picture themselves in the home, eating in the dining room, watching television in the family room, entertaining friends in the living room and being proud of their new home.

How do you create a positive first impression? The following four points will help set the stage to sell your home:

* Be objective
* NCR - neat, cleaned and repaired
* Nothing scary
* Dramatize and neutralize

Be objective You have probably become so accustomed to your home that being objective can be tough. Everything is where you want it to be and it is very comfortable. Now you must look at your house objectively, just as if you were looking at it for the first time through the eyes of a buyer.

The appearance of your home and how well it shows can result in the following advantages:

* a substantial difference in the selling price
* a major impact on how fast it sells
* an increase in exposure by other REALTORS.

You have to look at your home with fresh eyes, compare it to other houses, and then make the cosmetic changes necessary to show your home to advantage. This is where your REALTOR can provide invaluable and impartial advice.

NCR Neat means your home is not cluttered. There are no magazines or newspapers lying around. All the toys have been put away. All the clothes are in closets and there are no dishes in the sink. These may seem to be very small items but any clutter creates an immediate negative impression.

Neat means that you may have to take a few items of furniture and store them elsewhere until your home is sold. Neat means you may have to take down some pictures or photographs if they make the walls look too busy. Sooner or later you will have to pack everything. Why not pack as many items as possible early, so that your home looks completely uncluttered? As you step through each room and look in each closet, ask yourself if you could pack these items or store them elsewhere.

Clean means that every counter top, every window, every floor sparkles. Clean means more than appearance, it also includes smell. If you have pets, be sure pet smells have been neutralized. Many of the potential buyers who walk through your home will be either allergic to animals or afraid of pets. Any pet smells will create a negative impression.

Repaired is a reminder to fix any item that creates an impression of neglect no matter how small it may be. A dripping faucet, a cracked window, and any peeling paint must be fixed. Even a small item that is broken sends a subtle message that the owners of this home have neglected to maintain it. This suggests that there may be some major items in need of repair.

Nothing scary Scary items are those that create an impression of a lack of care or serious structural problems. Paint peeling from a ceiling, a light that doesn’t work, a stiff door or cracks in a wall that suggest shifting foundations, water stains that hint at bad plumbing - all are scary items. They create a negative first impression.

Dramatize and neutralize To dramatize is to select unique items and build on them. To neutralize is to take negative items and minimize their impact. You'll want to dramatize items such as fireplaces, picture windows, hardwood floors, curved staircases and large bright kitchens. These are impressive selling features and should be played up as much as possible.

Items such as brass fireplace utensils should be displayed beside the fireplace to draw attention to it. Logs should be in a neat pile beside the fireplace. Hardwood floors should be highly polished with small throw rugs to draw attention to the floors. The curtain on a picture window should be drawn back so that the window and view capture the buyer's attention. Select the most impressive features of your home and arrange the furniture and accessories to dramatize their appeal.

Neutralize means to downplay the eccentric items of your home. In most cases, you will be able to avoid major costs to neutralize a negative feature. In some cases, it may be well worth an investment to repaint or even replace items that will create a negative impression.

Marketing Recommendations

Exterior General

* Winter is a messy and gray time of year, and it is hard to make any home look cheery. As the snow continues to melt, make sure any garbage or debris that may be under the snow is removed. Power wash the siding if necessary.
* If the house stays on the market until spring, make sure your flower beds get planted, and consider adding a pot of bright flowers near the side entrance.
* Make sure all exterior lights are working.
* Prospective buyers should have access to the front door if they wish, so make sure the front walk is kept clear of snow and debris.

Interior General

* Make sure all light fixtures are clean and working.
* Inspect trim, baseboard, windowsills and baseboard heaters, dusting and cleaning if required.
* Ensure all windows are clean.
* Organize and neatly store all belongings. Since you are planning to move anyway, you may want to start packing some non-essential items and stacking the boxes neatly in your storage room or off-site. The reduction of clutter cannot be overemphasized. It will make your home seems more spacious.
* Once de-cluttering has been accomplished, go through the house and touch up walls and baseboards as required.

Review Your Home Before the "For Sale" Sign Goes Up

The first or "initial" review occurs when you and your REALTOR start at the bottom of your driveway and go through every room in your home to identify any major items that you will remove or repair.

The second or "packaging" review takes place once the items identified for repair have been addressed and the home is now ready to be listed. MLS photographs of the exterior and interior are usually taken at this time.

The third or "presentation" review will take place as you prepare the house for an open house or showing. These are the finishing touches to be made just before an open house or just before a buyer arrives to be shown through your home.

Driveway - If at all possible there should be no more than one car in the driveway. The ideal is no cars at all in the driveway.

Front door and entrance - Imagine that you are a buyer and you are walking through your front door for the very first time. What is your first impression of this home? How does it look? How does it feel? How does it smell? How does it sound? With a little extra care, entrance stairs can present a very positive image. The best approach is to dramatize them with flowers, ornaments or something welcoming. Place a large plant, possibly a hanging plant, near the front door. Hang a wreath on the door. Place a new welcome mat in front of the door. Hang an attractive mirror at the landing. Have a large pot of seasonal flowers, leaves or greens near the door.

Living room - In most homes, the living room is the first room that a buyer sees. The living room is the showpiece of your home. Make it neat and attractive, emphasizing its most "homey" features. Place a large vase of flowers on a coffee table in the centre of the living room. Have lights focused on pictures.

Family room - In most homes, the family room is the real living room. The family room becomes the centre of activity for most families. The family room and kitchen are the two most important rooms in the home in terms of buyers seeing this as "their" home. Be sure the fireplace accessories are in place with a neat pile of fireplace logs close by. If possible have a fire burning in the fireplace. Throw an afghan over a chair to enhance the feeling of warmth and comfort. Have a game neatly laid out on the coffee table.

Kitchen - Remove and store extra appliances to make the countertop seem more spacious. The cupboards should be spotless inside and out. Remove garbage. Be sure all the lights are on and the kitchen is bright. During the day the blinds should be open. Place a vase of flowers or a plant on the kitchen table.

Dining room - In most homes, the dining room is a showpiece used infrequently and only for special occasions. Most buyers will give the dining room a quick glance and a walk through. It may not be as important as the kitchen or family room, but it must have a positive impact that encourages buyers to envision having their holiday dinners there. Arrange items on the dining room table to dramatize the feeling of fine dining. For instance, a silver tea set on a buffet in the dining room creates an image of elegance. Have an attractive tablecloth in place, and some fresh flowers in the centre of the table.

Bathroom - The bathroom should be squeaky clean and deodorized. Be sure your best towels are in place. Have scented candles burning and scented soap on the sink. Have a set of matching bathroom glasses and soap holder.

Front closet - The best way to dramatize a closet is to be sure that it is only one-half to three-quarters full and that the floors and shelves are neat.

Master bedroom - The master bedroom is one of the three most important rooms in a home for most buyers. We spend one-third of our lives sleeping and we look for a safe, comfortable haven. Arrange your best bedspread with matching pillowcases on the bed. Be sure that lights beside the bed are on. Have an open book on the night table.

Other bedrooms - Arrange toys to create an image of comfort. Use your best bedspreads on the beds. Arrange pillows on the beds.

Basement - Have a project or hobby in place on a workbench.

Garage - All tools should be stored neatly to dramatize the usefulness of the garage.

Recreation room - Have one or two toys or games strategically placed to demonstrate the full aspects of the room.

Den - A den or library is a plus. It should appear as a well-organized, cozy, private refuge where buyers could envision themselves working. Have one book on the desk with a bookmark in it.

Showing Tips

When an appointment is made to show your home, you can make sure it looks its best by taking a few steps before you go out:

* Turn on all the lights. This is an absolute must whenever showings occur. Darkness portrays a dullness and creates an atmosphere that may lead to potential buyers imagining you are hiding your home's flaws. Light creates a positive mood, which creates good feelings.

* Turn on the stereo. This background noise makes for a pleasant atmosphere and may also mask noise from the neighbours.

* Bake something or make coffee. Store merchandisers know that the smell of baking goods or brewing coffee puts customers in a mood to buy.

* Don't be at home when buyers come in. People who spend thousands of dollars buying what usually is their biggest investment want to feel at ease when inspecting your home. When you are in the house, the buyers will not talk freely with their realtor, nor will they look as hard at the special features your home has to offer. They feel as if they are intruders. Studies show that buyers walk through a home three times faster when the seller is home. You want prospective buyers to take their time, to feel comfortable and at home, to imagine themselves living in the home, to picture their furniture in every room.

The perfect buyer for your home is out there, right now, looking for it. All your work ahead of time will just make that buyer's decision a little easier!